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Alcatel-Lucent (SWOT Analysis) - July 2013

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Alcatel-Lucent

Alcatel-Lucent (or "the company") offers solutions for service providers, enterprises and governments worldwide that enable provision of voice, data and video communication services to end users. The company provides end-to-end network solutions including fixed, mobile and converged broadband access, carrier and enterprise internet protocol (IP) technologies, applications, and services. Alcatel-Lucent primarily operates in the Americas and Europe. It is headquartered in Paris, France and employed about 72,344 people as of December 31, 2012.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Technology leadership through strong focus on R&D
  • Strong market position
  • Wide geographic presence

Weaknesses

  • Concentrated customer base could increase business risk
  • Lower margins and poor allocation of resources as compared to peers

External

Opportunities

  • Positive trends in mobility to drive growth
  • Increasing adoption of cloud computing services
  • Growth in fixed broadband market

Threats

  • Competitive pressure
  • Challenging global economic condition
  • could impact sales
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